Environmental groups oppose BP settlement

Published: Saturday, October 20, 2012 at 6:01 a.m.

Last Modified: Saturday, October 20, 2012 at 1:10 a.m.

Environmental groups are crying foul after recent reports that BP has offered to settle environmental damage fines related to the 2010 Gulf oil spill for $16 billion to $18 billion.

John Kostyack, vice president of wildlife conservation at the National Wildlife Federation, called the offer inadequate, saying it was less than half of the company’s total liability to repair the largest environmental disaster in U.S. history.

National Wildlife Federation officials estimated BP should face a liability of more than $50 billion for its damage to the Gulf of Mexico.

“BP should not be let off the hook with a low settlement and allowed to shortchange the Gulf,” Kostyack said. “A low settlement leaves the Gulf of Mexico more vulnerable to further deterioration from natural and man-made disasters, as well as demonstrates to polluters that they will not be held fully accountable.”

There are two major sources of environmental fines BP will face as part of the settlement. BP can be fined from $1,000 to $4,300 per barrel leaked for violations of the federal Clean Water Act. Just a month ago, the Justice Department announced in a court filing it would pursue holding BP responsible for “gross negligence and willful misconduct” in the spill, which would result in the heftiest fines under the Clean Water Act.

That could add up to fines of more than $20 billion, 80 percent of which will go back to the Gulf Coast for environmental and economic restoration projects.

BP will also be fined under the Natural Resource Damage Assessment, a legal process that quantifies the cleanup cost and the cost of restoring the natural resources of the Gulf back to where they were before the spill.

That process involves a huge study of the damage the spill caused to the environment. That information is used to develop a plan to restore the environment that BP must pay for.

Kostyack said it is hard to determine how much the Natural Resource Damage Assessment plan will cost BP because much of the data on spill damage being collected is still secret. But looking at what Exxon was fined after the Exxon Valdez spill in Alaska in 1989 and using today’s costs, it should amount to around $30 billion, he said.

“It will take an investment of tens of billions of dollars to restore the Gulf over the long-term,” said Ian MacDonald, professor of Oceanography at Florida State University. “Crucial data is still being gathered to assess the damage for the Gulf oil disaster, so a potentially low settlement now is cause for concern.”

MacDonald said “troubling long-term trends” in the Gulf’s environment are still being assessed by scientists. That includes effects in the microbial environments in the Gulf and in beach sands that could reverberate through the food chain to impact the long-term productivity of the ecosystem.

There has also been wetland loss, damage to Gulf coral communities and immediate deaths and possible long-term health effects for birds and marine mammals.

Some studies have shown the combination of oil and the dispersant Corexit used during the spill could have been more toxic overall than oil alone, MacDonald said.

People on the Gulf have also suffered, MacDonald added. Billions in tourism revenue was lost, and economic loss to commercial and recreational fisheries may top $8.4 billion. The loss of family-owned businesses and traditions had a serious mental health impact on Gulf residents.

While national media attention has drifted away from the spill, MacDonald said, the “shift in coverage to more immediate events must not blind us to what’s needed to restore a health ecosystem.”

Both the Clean Water Act and the Natural Resources Damage Assessment have important roles to play after the oil spill, with the former aiming to deter future environmental disasters and the latter aiming to restore the Gulf environment. Kostyack encouraged the federal government to seek the maximum penalty for each.

“We need to know what is the total liability? And how much reduction is being proposed? And is it fair?” he said.

Nikki Buskey can be reached at 857-2205 or nicole.buskey@houmatoday.com.

<p>Environmental groups are crying foul after recent reports that BP has offered to settle environmental damage fines related to the 2010 Gulf oil spill for $16 billion to $18 billion.</p><p>John Kostyack, vice president of wildlife conservation at the National Wildlife Federation, called the offer inadequate, saying it was less than half of the company's total liability to repair the largest environmental disaster in U.S. history.</p><p>National Wildlife Federation officials estimated BP should face a liability of more than $50 billion for its damage to the Gulf of Mexico.</p><p>“BP should not be let off the hook with a low settlement and allowed to shortchange the Gulf,” Kostyack said. “A low settlement leaves the Gulf of Mexico more vulnerable to further deterioration from natural and man-made disasters, as well as demonstrates to polluters that they will not be held fully accountable.”</p><p>There are two major sources of environmental fines BP will face as part of the settlement. BP can be fined from $1,000 to $4,300 per barrel leaked for violations of the federal Clean Water Act. Just a month ago, the Justice Department announced in a court filing it would pursue holding BP responsible for “gross negligence and willful misconduct” in the spill, which would result in the heftiest fines under the Clean Water Act.</p><p>That could add up to fines of more than $20 billion, 80 percent of which will go back to the Gulf Coast for environmental and economic restoration projects.</p><p>BP will also be fined under the Natural Resource Damage Assessment, a legal process that quantifies the cleanup cost and the cost of restoring the natural resources of the Gulf back to where they were before the spill.</p><p>That process involves a huge study of the damage the spill caused to the environment. That information is used to develop a plan to restore the environment that BP must pay for.</p><p>Kostyack said it is hard to determine how much the Natural Resource Damage Assessment plan will cost BP because much of the data on spill damage being collected is still secret. But looking at what Exxon was fined after the Exxon Valdez spill in Alaska in 1989 and using today's costs, it should amount to around $30 billion, he said.</p><p>“It will take an investment of tens of billions of dollars to restore the Gulf over the long-term,” said Ian MacDonald, professor of Oceanography at Florida State University. “Crucial data is still being gathered to assess the damage for the Gulf oil disaster, so a potentially low settlement now is cause for concern.”</p><p>BP will also face fines under the Migratory Bird Treaty Act, Marine Mammal Protection Act, Endangered Species Act and Outer Continental Shelf Lands Act.</p><p>MacDonald said “troubling long-term trends” in the Gulf's environment are still being assessed by scientists. That includes effects in the microbial environments in the Gulf and in beach sands that could reverberate through the food chain to impact the long-term productivity of the ecosystem.</p><p>There has also been wetland loss, damage to Gulf coral communities and immediate deaths and possible long-term health effects for birds and marine mammals.</p><p>Some studies have shown the combination of oil and the dispersant Corexit used during the spill could have been more toxic overall than oil alone, MacDonald said.</p><p>People on the Gulf have also suffered, MacDonald added. Billions in tourism revenue was lost, and economic loss to commercial and recreational fisheries may top $8.4 billion. The loss of family-owned businesses and traditions had a serious mental health impact on Gulf residents.</p><p>While national media attention has drifted away from the spill, MacDonald said, the “shift in coverage to more immediate events must not blind us to what's needed to restore a health ecosystem.”</p><p>Both the Clean Water Act and the Natural Resources Damage Assessment have important roles to play after the oil spill, with the former aiming to deter future environmental disasters and the latter aiming to restore the Gulf environment. Kostyack encouraged the federal government to seek the maximum penalty for each.</p><p>“We need to know what is the total liability? And how much reduction is being proposed? And is it fair?” he said.</p><p>Nikki Buskey can be reached at 857-2205 or nicole.buskey@houmatoday.com.</p>